Indian Equity Research and Investment Strategy
Infrastructure Financier, IDFC reported profits of Rs3.8bn (+21% YoY, 13% QoQ). Loan book grew by 4% QoQ and 34% YoY
(vs. 10% QoQ, 28% YoY in QE Mar-2012). IDFC disbursed Rs45bn of new loans this quarter – vs. Rs60bn in QE Mar-12.
Incremental disbursements this quarter were driven mainly by the energy (more…)
Even though the constituents of Index are evenly distributed across sectors, however, at times certain stocks run so high that their weightage keeps rising in the Index. Sometimes more stocks from the sector gain an index entry, making the sector weight swell further. Ultimately, valuations rise to a level that overestimates future growth leading to what is usually a dramatic drop in the weight of the sector.
Background with illustration on Sectoral Boom
In the mid-90s we saw industrial de-licensing and the quest of companies for global (more…)
The Industrial production (IP) growth decelerated to -1.8%YoY in June 2012 from +2.5%YoY in May. The manufacturing segment output weakened by -3.2%YoY as compared with growth of 2.6%YoY in May. Within manufacturing, industry group electric machinery and apparatus contributed most to the weakness, declining by 56%YoY, followed by food product and beverages (-5.7%), tobacco products (-5.4%) and motor vehicles.
Capital goods output declined sharply by 27.9%YoY in June, (more…)
Foreign Institutional Investors – FII Investments in India stands at 15.7% is near its historic high. Insurance holdings of Indian equities at 5.9% are at an all time high. Mutual fund holdings at 3.7% are well off the highs though.
Portfolio Strategy
Over Mar-12 to June -12, FIIs increased their holdings in Consumer Staples, Utilities and Health Care sectors, while they reduced holding in Industrials, IT Services and Financials sectors. At the aggregate level, FIIs are currently overweight Financials and Consumer Discretionary and underweight Energy, IT Services and Industrials vs. the MSCI India benchmark. (more…)
Veritas Research is the crusader of Capital Markets writing out bold reports against companies like Reliance, etc ir-respective of the Political, Money and Muscle power the company’s management enjoys in India.
In a report on the IndiaBulls Group, Veritas has leveled some serious charges of bilking institutional and retail investors for the benefit of select insiders and put a SELL Recommendation on IndiaBulls Real Estate, IndiaBulls Financial Services, IndiaBulls Power [Down 8% after SELL-OFF]
Veritas has published this report (more…)
With the change in Guard at North Block earlier this month, Analysts from DalalStreet met a range of people across Ministries, the Planning Commission, the Council of Economic Advisors to the Prime Minister, policy analysts and seasoned political journalists seeking views of the Indian Economy and Business. Everybody acknowledged there is urgency of the situation, and in particular the fear of a credit rating downgrade is a strong
compulsion to act.
The overall tone was cautious, perhaps best summarized by a remark from one senior adviser that “there is now a clear intent on the part of government. But will it lead to outcomes?” One of the Joint-Secretary said “issue, what issue”, plugging the line “the world makes India look good…foreign institutions have invested $10.5bn already this year”.
Key Takeaways from the meeting, (more…)